Ch.7 · Total Expense Ratio Limits · hard
What is the maximum TER permitted for liquid funds?
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EXPLANATION
Liquid funds have among the lowest TER limits — starting at 0.65% for the smallest AUM slab and stepping down as AUM grows. This reflects the very low management effort (investing in short-term instruments), high competition, and the fact that liquid funds are used as cash management tools where even small cost differences matter significantly.
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